Food Prices Increased to their Peak in 18 Months, according to FAO.

The Food and Agriculture Organization of the UN, monitors global food prices and publishes monthly updates. One of FAO’s latest reports suggests that the FAO’s Food Price index increased to its highest level in 18 months (127.4 points), marking a 2.0 percent increase from September and a 5.5 percent increase from previous years.

The worldwide food price surge was prominently led by vegetable oil prices, which rose by 7.3 percent in FAO’s index. The vegetable oil price broke the last two years’ price record (in FAO index), as a result of low production.

Additionally, Cereal prices rose by 0.9 percent in October. Due to increased export expenses, adverse weather, Russia’s unofficial price hikes, and the Black Sea’s precarious transportation situation.

The FAO sugar index increased by 2.6 percent and the dairy price index climbed by 1.9 percent.

Contrarily, the meat price index showed a 0.3 percent decline from September. As the pig meat demand reduced slightly both internationally and locally.